The NZD could be setting up for a reversal opportunity however the currency is still the weakest currently. What do we need to see in order to look for reversal opportunities on #NZDUSD?
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The New Zealand Dollar is a currency in focus for us this week due to the currency strength meter highlighting it is very weak but in a reversal zone. When the currency strength meter shows this it means that we could either see the currency trend against stronger currencies or reverse against weaker ones.
Looking at the NZDUSD chart we can see that the price could be either looking to continue the trend or reverse. The USD weakness recently has seen the price of the NZDUSD rally back towards the major 0.6700 resistance level. If the price is going to form a reversal opportunity we would expect the price to trade through this level. However, if the price begins to reject this level we could see a trend continuation opportunity especially if the price forms a bearish trend on the lower time frame.
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